IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v71y2024ics027553192400254x.html
   My bibliography  Save this article

The effect of executive green human capital on greenwashing

Author

Listed:
  • Shi, Daqian
  • Lu, Shan
  • Fang, Ziwei

Abstract

Faced with the great pressure from various environmental policies, firms are increasingly interested to use green advertising claims to tag themselves as environmental-friendly. Greenwashing appears as an attractive strategy that could cover up firms’ irresponsible environmental behavior. Against this background, our study focuses on the relationship between green human capital of executive and corporate greenwashing, trying to discover the internal driving force that curbs firms’ irresponsible environmental behavior. Based on the pro-environmental behavior theory, we empirically examine the effect of EGHC on corporate greenwashing and further discover underlying mechanisms. Our finding suggests EGHC could significantly alleviate firms’ greenwashing, stimulating the inherently pro-environmental behavior within enterprises. This is resulted from the strengthening of executive’ environmental awareness and responsibility. Heterogeneous tests show the negative effect of EGHC on greenwashing is more prominent in non-state-owned, small-and-middle, growing and non-polluting firms and firms whose executives are experienced in environmental protection.

Suggested Citation

  • Shi, Daqian & Lu, Shan & Fang, Ziwei, 2024. "The effect of executive green human capital on greenwashing," Research in International Business and Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s027553192400254x
    DOI: 10.1016/j.ribaf.2024.102461
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S027553192400254X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102461?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pascual Berrone & Andrea Fosfuri & Liliana Gelabert, 2017. "Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy," Journal of Business Ethics, Springer, vol. 144(2), pages 363-379, August.
    2. Cornelissen, Gert & Pandelaere, Mario & Warlop, Luk & Dewitte, Siegfried, 2008. "Positive cueing: Promoting sustainable consumer behavior by cueing common environmental behaviors as environmental," International Journal of Research in Marketing, Elsevier, vol. 25(1), pages 46-55.
    3. Kent Walker & Fang Wan, 2012. "The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications," Journal of Business Ethics, Springer, vol. 109(2), pages 227-242, August.
    4. Francesco Testa & Olivier Boiral & Fabio Iraldo, 2018. "Internalization of Environmental Practices and Institutional Complexity: Can Stakeholders Pressures Encourage Greenwashing?," Journal of Business Ethics, Springer, vol. 147(2), pages 287-307, January.
    5. Khan, Muhammad Arif & Khan, Ashraf & Hassan, M. Kabir & Maraghini, Maria Pia, 2024. "Market response to environmental social and governance performance: A global analysis," Research in International Business and Finance, Elsevier, vol. 67(PA).
    6. Galletta, Simona & Mazzù, Sebastiano & Naciti, Valeria & Paltrinieri, Andrea, 2024. "A PRISMA systematic review of greenwashing in the banking industry: A call for action," Research in International Business and Finance, Elsevier, vol. 69(C).
    7. Zheng, Jinlin & Jiang, Yaohui & Cui, Yadong & Shen, Yue, 2023. "Green bond issuance and corporate ESG performance: Steps toward green and low-carbon development," Research in International Business and Finance, Elsevier, vol. 66(C).
    8. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2024. "Greenwashing, bank financial performance and the moderating role of gender diversity," Research in International Business and Finance, Elsevier, vol. 69(C).
    9. Zhang, Dongyang, 2023. "Can environmental monitoring power transition curb corporate greenwashing behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 199-218.
    10. Avramov, Doron & Cheng, Si & Lioui, Abraham & Tarelli, Andrea, 2022. "Sustainable investing with ESG rating uncertainty," Journal of Financial Economics, Elsevier, vol. 145(2), pages 642-664.
    11. Yasir Shahab & Collins G. Ntim & Yugang Chen & Farid Ullah & Hai‐Xia Li & Zhiwei Ye, 2020. "Chief executive officer attributes, sustainable performance, environmental performance, and environmental reporting: New insights from upper echelons perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 1-16, January.
    12. Meng, Chenyang & Shi, Daqian & Wang, Bin, 2023. "The impact of green human capital of entrepreneur on enterprise green innovation: A study based on the theory of pro-environmental behavior," Finance Research Letters, Elsevier, vol. 58(PB).
    13. Rui Guo & Lan Tao & Caroline Bingxin Li & Tao Wang, 2017. "A Path Analysis of Greenwashing in a Trust Crisis Among Chinese Energy Companies: The Role of Brand Legitimacy and Brand Loyalty," Journal of Business Ethics, Springer, vol. 140(3), pages 523-536, February.
    14. Dyck, Alexander & Lins, Karl V. & Roth, Lukas & Wagner, Hannes F., 2019. "Do institutional investors drive corporate social responsibility? International evidence," Journal of Financial Economics, Elsevier, vol. 131(3), pages 693-714.
    15. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, vol. 34(6), pages 795-816, August.
    16. Yu, Ellen Pei-yi & Luu, Bac Van & Chen, Catherine Huirong, 2020. "Greenwashing in environmental, social and governance disclosures," Research in International Business and Finance, Elsevier, vol. 52(C).
    17. Hu, Xinwen & Hua, Renhai & Liu, Qingfu & Wang, Chuanjie, 2023. "The green fog: Environmental rating disagreement and corporate greenwashing," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    18. Jyoti Mahadeo & Teerooven Soobaroyen & Vanisha Hanuman, 2012. "Board Composition and Financial Performance: Uncovering the Effects of Diversity in an Emerging Economy," Journal of Business Ethics, Springer, vol. 105(3), pages 375-388, February.
    19. Xixiong Xu & Lingling Duan & Cuiliang Lin, 2022. "Early Experience Within Tizhi System, Policy Perception and Corporate Innovation: Evidence from Chinese Private Firms," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(14), pages 3899-3912, November.
    20. Bilal Bin Saeed & Bilal Afsar & Shakir Hafeez & Imran Khan & Muhammad Tahir & Muhammad Asim Afridi, 2019. "Promoting employee's proenvironmental behavior through green human resource management practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 424-438, March.
    21. Galletta, Simona & Mazzù, Sebastiano & Naciti, Valeria, 2022. "A bibliometric analysis of ESG performance in the banking industry: From the current status to future directions," Research in International Business and Finance, Elsevier, vol. 62(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2024. "Greenwashing, bank financial performance and the moderating role of gender diversity," Research in International Business and Finance, Elsevier, vol. 69(C).
    2. Dong, Ciwei & Huang, Qianzhi & Pan, Yuqing & Ng, Chi To & Liu, Renjun, 2023. "Logistics outsourcing: Effects of greenwashing and blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    3. Kiran, Madiha & Chughtai, Sumayya & Naeem, Muhammad Abubakr, 2024. "Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty," Research in International Business and Finance, Elsevier, vol. 71(C).
    4. Torelli, Riccardo & Balluchi, Federica & Lazzini, Arianna, 2019. "Greenwashing and Environmental Communication: Effects on Stakeholders’ Perceptions," OSF Preprints 97vxn, Center for Open Science.
    5. Fiordelisi, Franco & Ricci, Ornella & Santilli, Gianluca, 2023. "Environmental engagement and stock price crash risk: Evidence from the European banking industry," International Review of Financial Analysis, Elsevier, vol. 88(C).
    6. Kesen Zhang & Zhen Pan & Mukund Janardhanan & Imran Patel, 2023. "Relationship analysis between greenwashing and environmental performance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 7927-7957, August.
    7. Guo, Kun & Bian, Yuan & Zhang, Dayong & Ji, Qiang, 2024. "ESG performance and corporate external financing in China: The role of rating disagreement," Research in International Business and Finance, Elsevier, vol. 69(C).
    8. Xing, Chao & Zhang, Xinyue & Zhang, Yuming & Zhang, Luxiu, 2024. "From green-washing to innovation-washing: Environmental information intangibility and corporate green innovation in China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 204-226.
    9. Ma Zhong & Weiqi Zhao & Yasir Shahab, 2022. "The philanthropic response of substantive and symbolic corporate social responsibility strategies to COVID‐19 crisis: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 339-355, March.
    10. Marco Ghitti & Gianfranco Gianfrate & Lorenza Palma, 2024. "The agency of greenwashing," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(3), pages 905-941, September.
    11. Balluchi, Federica & Lazzini, Arianna & Torelli, Riccardo, 2020. "CSR and Greenwashing: A Matter of Perception in the Search of Legitimacy," OSF Preprints 5x6sy, Center for Open Science.
    12. Galletta, Simona & Mazzù, Sebastiano & Naciti, Valeria & Paltrinieri, Andrea, 2024. "A PRISMA systematic review of greenwashing in the banking industry: A call for action," Research in International Business and Finance, Elsevier, vol. 69(C).
    13. Riccardo Torelli & Federica Balluchi & Arianna Lazzini, 2020. "Greenwashing and environmental communication: Effects on stakeholders' perceptions," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 407-421, February.
    14. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    15. Francesca Bernini & Fabio La Rosa, 2024. "Research in the greenwashing field: concepts, theories, and potential impacts on economic and social value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 405-444, June.
    16. Torelli, Riccardo, 2020. "Sustainability, Responsibility and Ethics: Different Concepts for a Single Path," OSF Preprints hb92c, Center for Open Science.
    17. Zhang, Guanglong, 2023. "Regulatory-driven corporate greenwashing: Evidence from “low-carbon city” pilot policy in China," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    18. Hu, Xinwen & Hua, Renhai & Liu, Qingfu & Wang, Chuanjie, 2023. "The green fog: Environmental rating disagreement and corporate greenwashing," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    19. Li, Yunzhong & Zhao, Yu & Ye, Chengfang & Li, Xiaofan & Tao, Yunqing, 2024. "ESG ratings and the cost of equity capital in China," Energy Economics, Elsevier, vol. 136(C).
    20. Guangrui Liu & Hao Qian & Yong Shi & Deli Yuan & Ming Zhou, 2024. "How do firms react to capital market liberalization? Evidence from ESG reporting greenwashing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4329-4344, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s027553192400254x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.